Property Assessments in the Mail

Property assessments for approximately 41,000 residential and commercial properties are now in the mail and property owners should receive them by Dec. 1.

“Since our last three-year assessment period the City of St. John’s has seen a period of unprecedented growth, which property owners will certainly see reflected in their property assessments,” says Ward 1 councillor Danny Breen, Chair of the Finance and Administration Standing Committee. “I want to assure property owners that Council will attempt to mitigate the increase in property values through a reduction in Mil rates when we release our 2013 budget.”

The City of St. John’s operates on a three-year assessment cycle. The City’s Assessment Division has stayed busy since the last assessment period reviewing approximately 10,000 property sales which have taken place in the City over the three year period since the last assessment. This information, combined with information related to each specific property, has been used to determine the property’s assessed value.

The previous assessment cycle was based on property values for Jan. 1, 2008. The assessments which are in the mail now to residents are based on a base date of Jan. 1, 2011. It is important that all properties are valued based on the same base date so a fair market value can be set for each property based on the same specific point in time. In the three years since the last assessment,  property values have increased significantly. Residential property, including residential vacant land, has increased by an average of 47 per cent, while commercial property, including commercial vacant land, has increased by an average of 29 per cent.

“The significant increase in economic activity in the City has driven population and business growth, this in turn has increased the demand for residential and commercial properties,” says Councillor Breen. “Increased property values are reflective of market place demand, particularly residential properties.”

The assessed value of a property is just one part of the equation when determining property tax. The other key factor is the Mil rate. The City of St. John’s will release its 2013 budget on Dec. 10 and at that time announce the Mil rates for Residential Realty Tax and Business Realty Tax. It is important to note that while an assessment may show an increase in property value of 47 per cent for example, by lowering the Mil rate the City will adjust the amount of tax payable, and residents and businesses will not see a tax increase in that range.

For further information:
Jennifer Mills
Communications Officer
City of St. John’s
Phone: 709-570-2037
Cell: 709-690-7586
E-mail: jmills@stjohns.ca

Danny Breen
Ward 1 Councillor
Chair, Finance and Administration Standing Committee
City of St. John’s
Phone: 576-1041
E-mail: dbreen@stjohns.ca